How to Make the Business Case for Lease Accounting Software
The Acumatica platform strives to meet customers’ evolving business demands. This includes recommending technology that makes financial decisions easier. Investing in the right lease accounting solution is beneficial for businesses seeking to improve their efficiency and organize financial data.
Adopting new accounting standards is easier with the right tools. When making a case for your business to implement lease accounting software, it’s important to highlight the benefits below.
Explain the investment
When convincing your company to use lease accounting software, the price is usually one of the first things discussed. Investing in the right financial tech will save time and money during the implementation process.
Companies can’t afford non-compliance. The penalties for missing the implementation deadline include potential fines and loss of confidence in the business. Justify the financial cost of lease accounting software with the benefits listed here.
Improved efficiency
Using software when adopting the new standards improves all-around efficiency. Quick journal entries and automated amortization tables reduce the number of hours employees will spend on month-end close. Easy access to the lease database decreases time spent organizing and searching for lease documents. This improved efficiency reduces workloads so companies can focus on other tasks.
Thorough reporting
Reporting is much easier with lease accounting software. All of your data is in one system rather than multiple spreadsheets. Automated reporting features are less prone to errors than manual entry. Customizable reports make fulfilling ad-hoc reporting requests from management a breeze.
Better prepared for audits
Audits are nerve-wracking experiences. With the right software, there are no surprises. Sending auditors any requested lease documents and schedules is easy. You can grant them read-only access to all of your lease documents. This saves your team the hassle of gathering documentation.
Improved interdepartmental communication
With lease accounting software, requesting documents or approvals from colleagues is simple. You can grant access based on the role and/or location of the employee, such as read-only or edit, allowing for efficient data sharing. After entering a lease into the system, you can activate alerts to notify you of upcoming critical dates to allow communication with your colleagues before important deadlines.
Downsides of using Excel
While Excel is a common tool used for accounting, it isn’t the most accurate choice for transitioning to the new lease accounting standards. Downsides exist to using manual spreadsheets to maintain your lease data, such as:
- Risk of non-compliance
- Prone to human errors
- No document repository
- No ability to approve changes
- More of a time commitment
- Data security risks
To avoid these pitfalls, implement a lease accounting software. It will save your team time and money in the long run.
Summary
Acumatica wants to help clients find an easier and more accurate way to simplify complex lease accounting and achieve compliance with the new standards. Using a lease accounting software increases efficiency, makes audit preparation easier, and improves communication between departments. Invest in technology to realize your long-term business goals.
